They’ve rescued Obama once. After 2012 he’ll try to get rid of them again.
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Those same block grants should be extended to all 183 of the remaining federal means tested welfare programs, estimated to cost altogether with Medicaid $10.3 trillion over the next 10 years. The states could then replace them with an entirely new welfare system providing assistance to the able bodied only in return for work. Instead of paying the poor not to work, they would be paid to work, ideally by private employers, contributing further to the economy as a result.
For Medicare, besides replacing the payroll tax with personal accounts, the rest of the program would be transformed to rely on vouchers for private insurance as well, effectively transforming the whole program into the highly popular Medicare Advantage option. The rest of federal spending should then be dialed back to 2007 levels and kept there until the budget is balanced, which would result under all of these reforms in less than 10 years.
Essential, fundamental reform of the Fed would involve ending all discretionary monetary policy, and requiring it to follow a price rule henceforth. The Fed would then tighten monetary policy when gold and other commodity prices rose, and the dollar fell, and ease monetary policy when prices started to fall.
Then all we would need is deregulation to unleash the private sector to produce the maximum of all forms of energy — oil, natural gas, coal, nuclear, even the alternative energy that is justifiable in the market. This would ensure a reliable supply of low cost energy to the economy, effectively providing still another tax cut.
This would be a prescription for another generation long economic boom, as was produced by Reaganomics, restoring the American Dream, and once again vaulting America far away into the world’s leading economy.